HomeMy WebLinkAbout030149 ORD - 04/08/2014Page 1 of 3
Ordinance
Approving a Business Incentive Agreement between the Corpus
Christi Business and Job Development Corporation ( "Type A
Corporation ") and Hausman Foods, LLC ( "Hausman ") to provide a
grant of up to $205,920, for the creation of jobs and authorizing the
City Manager, or designee, to execute a Business Incentive Project
Service Agreement with the Type A Corporation regarding
implementation and administration of the Hausman Business
Incentive Agreement for the creation of jobs; and appropriating
$205,920 from the unreserved fund balance in the No. 1140
Business /Job Development Fund for said business incentive grant
from the Type A Corporation to Hausman; and changing the FY 2013-
2014 operating budget, adopted by Ordinance No. 029915, by
increasing proposed expenditures by $205,920.
Whereas, the Type A Corporation has budgeted funds to assist businesses create or
retain jobs in the City of Corpus Christi, Texas ( "City ").
Whereas, the Type A Corporation has requested proposals from businesses that will
create or retain jobs within the City, and determined that the proposal from Hausman for
the improvements to their facility on Beacon Street in Corpus Christi and the creation of
jobs; in which Hausman will invest at least $2,100,000 for improvements to their meat
processing facility and the creation of at least 52 full -time jobs with an average annual
salary of at least $29,000 and annual payroll of at least $1,508,000 over a five year
period will best satisfy this goal;
Whereas, City Council deems that it is the best interest of the City and citizens to
approve the business incentive agreement for creation of jobs between the Type A
Corporation and Hausman;
Whereas, there is a need for a business incentive project service agreement between
the City and the Type A Corporation for the implementation and administration of the
business incentive agreement for the creation of jobs between the Type A Corporation
and Hausman.
Now, therefore, be it resolved by the City Council of the City of Corpus Christi,
Texas:
SECTION 1. That the business incentive agreement for the creation of jobs between
the Type A Corporation and Hausman that provides for the improvements to their meat
processing facility and the creation of jobs within the City of Corpus Christi, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a project
service agreement between the City and Type A Corporation for the implementation and
administration of the business incentive agreement with Hausman, which is attached to
this resolution as Exhibit B.
ORDINANCE - Hausman
030149
INDEXED
Page 2 of 3
SECTION 3. That $205,920 from the unreserved fund balance in the No. 1140
Business /Job Development Fund is appropriated for a business incentive grant from the
Type A Corporation to Hausman for the improvements to their meat processing facility
and the creation of jobs.
SECTION 4. That Ordinance No. 029915, which adopted the FY 2013 -2014 Operating
Fund, is changed to increase proposed expenditures in the No. 1140 Business /Job
Development Fund by $205,920 for a business incentive grant from the Type A
Corporation to Hausman for the improvements to their meat processing facility and the
creation of jobs.
ATTEST:
Rebecca Huerta
City Secretary
APPROVED: gyof
Corpus Christi, Texas
2014.
THE CITY OF CORPUS CHRISTI
Nelda Martinez
Mayor
That the foregoing Rrcligance was read for the first time and passed to its
reading on this the of'A t( Ck\-), 2014, by the following vote:
Nelda Martinez
Kelley Allen
Rudy Garza
Priscilla Leal
David Loeb
ORDINANCE - Hausman
01/4\06k4i-
Chad Magill
Colleen McIntyre
Lillian Riojas
Mark Scott
030149
second
(k104-0,4-
Page 3 of 3
That t o{egoing ordinance was read for the second time and passed finally on this
the day of , 2014, by the following vote:
Nelda Martinez
Kelley Allen
Rudy Garza
Priscilla Leal
David Loeb
PASSED AND APPROVED, this the
ATTEST:
Rebecca Huerta
City Secretary
ORDINANCE - Hausman
Chad Magill
Colleen McIntyre
Lillian Riojas
Mark Scott
day of
, 2014.
Nelda Martinez
Mayor
BUSINESS INCENTIVE AGREEMENT BETWEEN
THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND
HAUSMAN FOODS, LLC
FOR CREATION OF JOBS
This Business Incentive Agreement for Capital Investments and the Creation of Jobs
( "Agreement ") is entered into between the Corpus Christi Business and Job Development
Corporation ( "Corporation ") and Hausman Foods, LLC ( "Hausman "), a Texas limited liability
corporation.
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil
Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas
Local Government Code, Section 504.002 et seq, ( "the Act "), empowered local communities
with the ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ( "City ") passed
Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a
sales and use tax for the promotion and development of new and expanded business
enterprises at the rate of one - eighth of one percent to be imposed for 15 years;
WHEREAS, the 1 /8th cent sales tax authorized by passage of Proposition 2 was subsequently
enacted by the City Council and filed with the State Comptroller of Texas, effective April 1,
2003, to be administered by the Corpus Christi Business and Job Development Corporation
Board;
WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the
purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus
Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ( "Board "), on October 18, 2010, amended
the Corporation's Guidelines and Criteria for Granting Business Incentives ( "Type A
Guidelines "), which the City Council approved on November 9, 2010;
WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and
expenditures of the Corporation;
WHEREAS, Hausman has been located in the City since 1939 and currently has four locations
that process meat for resale to grocery stores and restaurants;
WHEREAS, Hausman proposes to invest approximately $2,100,000 over a five year period;
WHEREAS, on January 20, 2014 the Board approved this grant and determined that it is in the
best interests of the citizens of Corpus Christi, Texas that business development funds be
Page 1 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
provided to Hausman, through this Agreement with Hausman, to be used by Hausman to add a
second shift to their Beacon Street facility and will result in the creation of 52 full -time jobs, with
an estimated annual average salary of $29,000.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and Hausman agree as follows:
1. Effective Date. The effective date of this Agreement ( "Effective Date ") is the latest date that
either party executes this Agreement.
2. Term. The term of this Agreement is for five years beginning on the effective date.
3. Performance Requirements and Grants. The Performance Requirements and Grants are
listed in Exhibit A, which is attached to and incorporated into this Agreement.
4. Job Creation Qualification.
a. In order to count as a created job under this Agreement, a "job" must be as defined in
the Type A Guidelines as a full -time employee, contractor, consultant, or leased
employee who has a home address in the Corpus Christi MSA.
b. Hausman agrees to confirm and document to the Corporation that the minimum
number of jobs created as a result of funding provided by this Agreement is maintained
throughout the term by the Business.
c. Hausman agrees to provide Corporation with a sworn certificate by authorized
representatives of each business assisted under this Agreement certifying the number of
full -time permanent employees employed by the business.
d. Hausman shall ensure that the Corporation is allowed reasonable access to personnel
records of the businesses assisted under this Agreement.
5. Utilization of Local Contractors and Suppliers. Hausman agrees to exercise reasonable
efforts in utilizing local contractors and suppliers in the construction of the Project, except where
not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice
in operating efficiency in the normal course of business, with a goal of 50% of the total dollar
amount of all construction contracts and supply agreements being paid to local contractors and
suppliers. For the purposes of this section, the term "local" as used to describe manufacturers,
suppliers, contractors, and labor includes firms, businesses, and persons who reside in or
maintain an office within a 50 mile radius of Nueces County. Hausman agrees, during the
construction of the Project and for four years after Completion, to maintain written records
documenting the efforts of Hausman to comply with the Local Requirement, and to provide an
annual report to the City Manager or designee, from which the City Manager or designee shall
determine if Hausman is in compliance with this requirement. Failure to substantially comply
Page 2of8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
with this requirement, in the sole determination of the City Manager or designee, shall be a
default hereunder.
6. Utilization of Disadvantaged Business Enterprises ( "DBE). Hausman agrees to exercise
reasonable efforts in utilizing contractors and suppliers that are determined to be disadvantaged
business enterprises, including minority business enterprises women -owned business
enterprises and historically- underutilized business enterprises. In order to qualify as a business
enterprise under this provision, the firm must be certified by the City, the Regional
Transportation Authority or another governmental entity in the jurisdiction of the home office of
the business as complying with state or federal standards for qualification as such an enterprise.
Hausman agrees to a goal of 30% of the total dollar amount of all construction contracts and
supply agreements being paid to disadvantaged business enterprises, with a priority made for
disadvantaged business enterprises which are local. Hausman agrees, during the construction
of the Project and for four years after Completion, to maintain written records documenting the
efforts of Hausman to comply with the DBE Requirement, and to provide an annual report to the
City Manager or designee, from which the City Manager or designee shall determine if
Hausman is in compliance with this requirement. Failure to substantially comply with this
requirement, in the sole determination of the City Manager or designee, shall be a default
hereunder. For the purposes of this section, the term "local" as used to describe contractors and
suppliers that are determined to be disadvantaged business enterprises, including minority
business enterprises women -owned business enterprises and historically - underutilized business
enterprises includes firms, businesses, and persons who reside in or maintain an office within a
50 mile radius of Nueces County.
7. Living Wage Requirement. In order to count as a permanent full -time job under this
agreement, the job should provide a "living wage" for the employee. The target living wage
under this agreement is that annual amount equal or greater than poverty level for a family of
three, established by the U.S. Department of Health and Human Services Poverty Guidelines,
divided by 2,080 hours per year for that year.
8. Health insurance. To qualify for this incentive, an employer shall certify that it has offered a
health insurance program for its employees during the term of the Agreement.
9. Warranties. Hausman warrants and represents to Corporation the following:
a. Hausman is a corporation duly organized, validly existing, and in good standing under
the laws of the State of Texas, has all corporate power and authority to carry on its
business as presently conducted in Corpus Christi, Texas.
b. Hausman has the authority to enter into and perform, and will perform, the terms of
this Agreement to the best of its ability.
c. Hausman has timely filed and will timely file all local, State, and Federal tax reports
and returns required by laws to be filed and all Texas, assessments, fees, and other
Page 3 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
governmental charges, including applicable ad valorem taxes, have been timely paid,
and will be timely paid , during the term of this Agreement.
d. Hausman has received a copy of the Act, and acknowledges that the funds granted in
this Agreement must be utilized solely for purposes authorized under State law and by
the terms of this Agreement.
e. The person executing this Agreement on behalf of Hausman is duly authorized to
execute this Agreement on behalf of Hausman.
f. Hausman does not and agrees that it will not knowingly employ an undocumented
worker. If, after receiving payments under this Agreement, Hausman is convicted of a
violation under §U.S.C. Section 1324a(f), Hausman shall repay the payments received
under this Agreement to the City, with interest at the Wall Street Journal Prime Rate, not
later than the 120`h day after the date Hausman has been notified of the violation.
10. Compliance with Laws. During the Term of this Agreement, Hausman shall observe and
obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and
city governments.
11. Non - Discrimination. Hausman covenants and agrees that Hausman will not discriminate
nor permit discrimination against any person or group of persons, with regard to employment
and the provision of services at, on, or in the Facility, on the grounds of race, religion, national
origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United
States or the State of Texas.
12. Force Majeure. If the Corporation or Hausman are prevented, wholly or in part, from
fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident,
acts of enemies, fires, floods, governmental restraint or regulation, other causes of force
majeure, or by reason of circumstances beyond its control, then the obligations of the
Corporation or Hausman are temporarily suspended during continuation of the force majeure. If
either party's obligation is affected by any of the causes of force majeure, the party affected
shall promptly notify the other party in writing, giving full particulars of the force majeure as soon
as possible after the occurrence of the cause or causes relied upon.
13. Assignment. Hausman may not assign all or any part of its rights, privileges, or duties
under this Agreement without the prior written approval of the Corporation and City. Any
attempted assignment without approval is void, and constitutes a breach of this Agreement.
14. indemnity. Hausman covenants to fully indemnify, save, and hold harmless the
Corporation, the City, their respective officers, employees, and agents ( "Indemnitees ")
against all liability, damage, loss, claims demands, and actions of any kind on account of
personal injuries (including, without limiting the foregoing, workers' compensation and
death claims), or property loss or damage of any kind, which arise out of or are in any
Page 4 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
manner connected with, or are claimed to arise out of or be in any manner connected
with Hausman activities conducted under or incidental to this Agreement, including any
injury, loss or damage caused by the sole or contributory negligence of any or all of the
Indemnitees. Hausman must, at its own expense, investigate all those claims and
demands, attend to their settlement or other disposition, defend all actions based on
those claims and demands with counsel satisfactory to Indemnitees, and pay all charges
of attorneys and all other cost and expenses of any kind arising from the liability,
damage, loss, claims, demands, or actions.
15. Events of Default by Hausman. The following events constitute a default of this Agreement
by Hausman:
a. The Corporation or City determines that any representation or warranty on behalf of
Hausman contained in this Agreement or in any financial statement, certificate, report, or
opinion submitted to the Corporation in connection with this Agreement was incorrect or
misleading in any material respect when made;
b. Any judgment is assessed against Hausman or any attachment or other levy against
the property of Hausman with respect to a claim remains unpaid, undischarged, or not
dismissed for a period of 120 days.
c. Hausman makes an assignment for the benefit of creditors.
d. Hausman files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
e. If taxes owed by Hausman become delinquent, and Hausman fails to timely and
properly follow the legal procedures for protest or contest.
f. Hausman changes the general character of business as conducted as of the date this
Agreement is approved by the Corporation.
g. Hausman fails to comply with one or more terms of this Agreement.
16. Notice of Default. Should the Corporation or City determine that Hausman is in default
according to the terms of this Agreement, the Corporation or City shall notify Hausman in writing
of the event of default and provide 60 days from the date of the notice ( "Cure Period ") for
Hausman to cure the event of default.
17. Results of Uncured Default by Hausman. After exhausting good faith attempts to address
any default during the Cure Period, and taking into account any extenuating circumstances that
might have occurred through no fault of Hausman, as determined by the Board of Directors of
the Corporation, the following actions must be taken for any default that remains uncured after
the Cure Period.
Page 5 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
a. Hausman shall immediately repay all funds paid by Corporation to them under this
Agreement.
b. Hausman shall pay Corporation reasonable attorney fees and costs of court to collect
amounts due to Corporation if not immediately repaid upon demand from the
Corporation.
c. Upon payment by Hausman of all sums due, the Corporation and Hausman shall have
no further obligations to one another under this Agreement.
18. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or condition of
this Agreement, constitutes a waiver of any subsequent breach of the covenant or
condition of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or condition of
this Agreement, justifies or authorizes the nonobservance on any other occasion of the
covenant or condition or any other covenant or condition of this Agreement.
c. Any waiver or indulgence of Hausman's default may not be considered an estoppel
against the Corporation.
d. It is expressly understood that if at any time Hausman is in default in any of its
conditions or covenants of this Agreement, the failure on the part of the Corporation to
promptly avail itself of the rights and remedies that the Corporation may have, will not be
considered a waiver on the part of the Corporation, but Corporation may at any time
avail itself of the rights or remedies or elect to terminate this Agreement on account of
the default.
19. Hausman specifically agrees that Corporation shall only be liable to Hausman for the actual
amount of the money grants to be conveyed to Hausman, and shall not be liable to Hausman for
any actual or consequential damages, direct or indirect, interest, attomey fees, or cost of court
for any act of default by Corporation under the terms of this Agreement. Payment by
Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during
the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic
conditions and to budget accordingly. However, it is further understood and agreed that, should
the actual total sales tax revenue collected for any one year be less than the total amount of
grants to be paid to all contracting parties with Corporation for that year, then in that event, all
contracting parties shall receive only their pro rata share of the available sales tax revenue for
that year, less Corporation's customary and usual costs and expenses, as compared to each
contracting parties' grant amount for that year, and Corporation shall not be liable to for any
deficiency at that time or at any time in the future. In this event, Corporation will provide all
Page 6of8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
�i yv� \,-4\
supporting documentation, as requested. Payments to be made shall also require a written
request from Hausman to be accompanied by all necessary supporting documentation.
20. The parties mutually agree and understand that funding under this Agreement is subject to
annual appropriations by the City Council; that each fiscal year's funding must be included in the
budget for that year; and the funding is not effective until approved by the City Council.
21. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage prepaid,
addressed as follows:
Hausman:
Hausman Foods, LLC
Attn: Steven McClure, Sr.
PO Box 2422
Corpus Christi, Texas 78403
Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn.: President
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent the City at the following
address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469 -9277
c. Notice is effective upon deposit in the United States mail in the manner provided
above.
22. Incorporation of other documents. The Type A Guidelines, as amended, are incorporated
into this Agreement.
23. Amendments or Modifications. No amendments or modifications to this Agreement may be
made, nor any provision waived, unless in writing signed by a person duly authorized to sign
Agreements on behalf of each party.
24. Relationship of Parties. In performing this Agreement, both the Corporation and Hausman
will act in an individual capacity, and not as agents, representatives, employees, employers,
Page 7 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
partners, joint - venturers, or associates of one another. The employees or agents of either party
may not be, nor be construed to be, the employees or agents of the other party for any purpose.
25. Captions. The captions in this Agreement are for convenience only and are not a part of
this Agreement. The captions do not in any way limit or amplify the terms and provisions of this
Agreement.
26. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or
word of this Agreement or the application of this Agreement to any person or
circumstance is, to any extent, held illegal, invalid, or unenforceable under present or
future law or by a final judgment of a court of competent jurisdiction, then the remainder
of this Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or unenforceable,
will not be affected by the law or judgment, for it is the definite intent of the parties to this
Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word
of this Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or unenforceable
under present or future law effective during the term of this Agreement, then the
remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid,
or unenforceable clause or provision, a clause or provision, as similar in terms to the
illegal, invalid, or unenforceable clause or provision as may be possible and be legal,
valid, and enforceable, will be added to this Agreement automatically.
27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas.
28. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and
Hausman. Any prior Agreements, promises, negotiations, or representations, verbal or
otherwise, not expressly stated in this Agreement, are of no force and effect.
29. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and
the obligation of the parties relating to Section 14.a and b shall survive the termination of this
Agreement.
The remainder of this page intentionally left blank.
Page 8 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
Corpus Christi Business & Job Development Corporation
By:
Date:
Attest:
By:
Robert Tamez
President
Rebecca Huerta
Assistant Secretary
Hausman Foods, LLC
By:
Date:
Steven R. McClure, Sr.
President
zlizl��l
THE STATE OF TEXAS
COUNTY OF NUECES f�,�
This instrument was acknowledged before me on Yv v 12- , 2014, by Steven R.
McClure, Sr., President, for Hausman Foods, LLC, a Texas I�ited liability corporation, on
behalf of the corporation
Notary Public
State of Texas
Page 9 of 8
Type A Business Incentive Jobs Creation Hausman 02 07 2014
:.. .,,�� MEREDITH DARDEN
: • = Notary Public. Vote of Texos
My Commission Expires
4 4;,,00 July 25, 2017
EXHIBIT A
PERFORMANCE MEASURES AND CORPORATION GRANTS
1. Hausman shall invest at least $2,100,000 to add a second shift to their Beacon Street facility,
over a five year period. Hausman shall further, over the term of this Agreement, create 52 full -
time jobs, with an average annual salary of $29,000 as described in the schedule below.
Year
Number of
New Jobs
Annual Payroll
Capital
Investment
1
10
290,000
300,000
2
15
725,000
300,000
3
7
928,000
400,000
4
10
1,218,000
450,000
5
10
1,508,000
550,000
a. Grants, not to exceed $41,184 per year and a cumulative total of $205,920 over five
years, are available on a per job created basis.
b. Should the Company fall below the Performance Standards in any one year, the
Company shall receive a reduced percentage of the Cash Incentive in effect that year.
Such reduction will be in that percentage equal to the percentage the Company's
performance falls below the Performance Standards. However if the Company falls
below 70% then there is no payment for that year.
By way of example only: assume a partial Cash Incentive payment is required in the fifth
year of this Agreement and the Performance Standards have not been reached. For the
purposes of calculating this reduced Cash Incentive, it is agreed that 20% of the Cash
Incentive is being given premised on the payroll requirements of this Agreement and
80% of yearly incentive amount is attributable to the capital investment requirements.
The reduced Cash Incentive shall be calculated as follows:
Annual payroll commitment: Annual Investment commitment:
5th year: $1,508,000 5th year: $550,000
5th year actual: $1,305,000 5th year actual: $555,000
Percent of Total 86.54% Percent of Total 100%
5th year incentive calculation:
Reduced Cash Incentive calculation:
20% x 86.54% x $41,184 = $7,128
Total Cash Incentive
Economic Incentive Calculation:
80% x 100% x $41,184 = $32,947.20
$7,128.00 + $32,947.20 = $40,075.20
A -1
Type A Business Incentive Jobs Creation and Retention Hausman 01 22 2014
In the 5th year, the Company would receive a reduced Cash Incentive of $40,075.20
from the Corporation for not meeting the performance goals for annual payroll
requirements.
2. The Corporation will award a grant to Hausman based on the formula above, payable not
later than June 15 of each year if Hausman makes the required capital investment in buildings,
furniture, fixtures and equipment, retains the minimum number of in the preceding year
described in paragraph 1 above (collectively, the "annual performance benchmarks ").
A -2
Type A Business Incentive Jobs Creation and Retention Hausman 01 22 2014
BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT
This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered
into between the Corpus Christi Business and Job Development Corporation ( "Type A
Corporation ") and the City of Corpus Christi, Texas ( "City ").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil
Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas
Local Government Code ( "the Act "), empowered local communities with the ability to adopt an
optional local sales and use tax as a means of improving the economic health and prosperity of
their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the
promotion and development of new and expanded business enterprises at the rate of one -
eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently
enacted by the City Council and filed with the State Comptroller of Texas, effective April 1,
2003, to be administered by the Type A Corporation's Board of Directors ( "Board ");
WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting
entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for
Granting Business Incentives on October 18, 2010, which the City Council approved on
November 9, 2010;
WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and
expenditures of the Type A Corporation;
WHEREAS, Hausman Foods, LLC ( "Hausman ") has submitted a proposal to the Type A
Corporation for a $205,920 grant for the investment of $2,100,000 and the creation of 52 new
jobs in their existing meat processing facility;
WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus
Christi, Texas, to fund Hausman's $2,100,000 investment and creation of 52 new jobs in their
existing meat processing facility; and
WHEREAS, the Type A Corporation and Hausman have executed a business incentives
agreement for the investment and the creation of jobs related to Hausman's adding a second
shift to their existing meat processing facility.
In consideration of the covenants, promises, and conditions stated in this Project Service
Agreement, the Type A Corporation and the City agree as follows:
1. Project Service Agreement to Implement Business Incentives Agreement. This Project
Service Agreement between the City and the Type A Corporation is executed to implement the
Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and
Hausman related to Hausman meat processing facility in Corpus Christi ( "Business Incentive
Agreement ").
Page 1 of 3
Type A Business Service Agreement - Hausman 01 -22 -14
2. Term. The term of this Project Service Agreement runs concurrently with the term of the
Business Incentive Agreement.
3. Services to be Provided by City.
a. The City Manager or designee shall administer funding on behalf of the Type A
Corporation.
b. The City Manager or designee shall perform contract administration responsibilities
outlined in the Business Incentive Agreement for the Type A Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to appropriation of
funds by City Council.
5. Effective Date. The effective date of this Project Service Agreement is the same date as the
Business Incentive agreement.
6. Amendments or Modifications. No amendments or modifications to this Project Service
Agreement may be made, nor any provision waived, unless in writing signed by a person duly
authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or
word of this Project Service Agreement or the application of this Project Service
Agreement to any person or circumstance is, to any extent, held illegal, invalid, or
unenforceable under present or future law or by a final judgment of a court of competent
jurisdiction, then the remainder of this Project Service Agreement, or the application of
the term or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the
definite intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or unenforceable
under present or future law effective during the term of this Project Service Agreement,
then the remainder of this Project Service Agreement is not affected by the law, and in
lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as
similar in terms to the illegal, invalid, or unenforceable clause or provision as may be
possible and be legal, valid, and enforceable, will be added to this Project Service
Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only and are
not a part of this Project Service Agreement. The captions do not in any way limit or amplify the
terms and provisions of this Project Service Agreement.
The remainder of this page intentionally left blank.
Page 2 of 3
Type A Business Service Agreement - Hausman 01 -22 -14
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson
City Manager
Robert Tamez
President
Date: Date:
Attest
Rebecca Huerta
City Secretary
Page 3 of 3
Type A Business Service Agreement - Hausman 01 -22 -14
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his /her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money required
for the current fiscal year's portion of the contract, agreement, obligation or expenditure described
below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has
not been appropriated for any other purpose. Future payments are subject to annual appropriation
by the City Council.
City Council Action Date: April 8, 2014
Agenda Item:
Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development
Corporation ( "Type A Corporation ") and Hausman Foods, LLC ( "Hausman ") to provide a grant of up to
$205,920, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business
Incentive Project Service Agreement with the Type A Corporation regarding implementation and
administration of the Hausman Business Incentive Agreement for the creation of jobs; and
appropriating $205,920 from the unreserved fund balance in the No. 1140 Business /Job Development
Fund for said business incentive grant from the Type A Corporation to Hausman; and changing the FY
2013 -2014 operating budget, adopted by Ordinance No. 029915, by increasing proposed expenditures
by $205,920.
Amount Required: $ 205,920.00
Fund Name
Account No.
Fund No.
Org. No.
Project No.
Amount
CCBJDC
530000
1140
15020
$205,920.00
Total
$205,920.00
❑ Certification Not Required
Director of Financial Services
Date: MAR 2 5 2014